Depreciation Entry Worksheet: Fill & Download for Free

Define “fun”. If journalizing entries, balancing accounts on worksheets, making different financial statements, dealing with adjustments and reversals, computing taxes, depreciations, revaluations, depletions and impairment, bank reconciliations etcetera etcetera etcetera is your idea of fun, then the answer is yes.But personally, I find accounting stressful and challenging. So NO, it is not fun. But it is definitely interesting.

An adjusted trial balance provides a listing of ending balances for all accounts after the adjusting entries are prepared. The goal of adjusting the entries is to correct errors made within previous iterations of the trial balance. Once the adjustments are made, the trial balance becomes a summary detailing all accounts within the general ledger. After the trial balance is adjusted, depreciation becomes a factor.Depreciation in Trial BalanceDepreciation entails a series of ongoing entries set to claim the cost of a fixed asset. It is a gradual charge to the asset over its expected useful life. The reason for using depreciation to reduce the recorded cost of the asset over time is to recognize amortization during the same time the company records the income generated from the asset.Depreciation in trial balance is a debit to the depreciation expense account. Over time, accumulated depreciation accounts increase until it nears the original cost of the asset, at which point, the depreciation expense account is closed out. Depreciation is usually seen as a cost, even though unlike other expenses, it is not a direct cash outflow. A company can create a net cash outflow for the full value of the asset when the assets are purchased.The depreciation can also be considered a credit to the accumulated depreciation account.Is Accumulated Depreciation an Asset?Accumulated depreciation is termed as an asset account and a credit. The depreciation which is noted within the credit and debit worksheet is a report of the total depreciation cost. The process of crediting the accumulated depreciation account means the balance sheet shows the original cost of the depreciated asset, the depreciation expense reported up until then, and the value of the asset not yet depreciated.The initial price of the asset is the gross cost. The initial value of the asset less the accumulated depreciation and other impairments is known as the carrying amount or net costs. According to trial balance rules, the balance in the accumulated depreciation account develops at a faster rate should the business use an accelerated depreciation approach, as it would charge the asset cost to expense during the early years. When the asset is eventually retired, the resulting figures for the accumulated depreciation account are reversed, leading to the removal of the record of the asset from the balance sheet.Is Closing Stock Shown in Trial Balance?Closing stock refers to inventory done at the end of the fiscal year, often through a physical count using the market price of the items. It is not shown in the trial balance, as it takes into consideration whether the closing stock has been adjusted with the purchase or not. This is required for a correct trial balance. The total purchases are included within the balance, and so the closing stock is not placed within the trial balance again.If the closing stock appears within the trial balance, it means the adjustment for the closing stock has already been made. It will be represented as a current asset on the right side of the balance sheet. From an accounting perspective, factors to consider while preparing the accounts include the fact that closing stocks will be illustrated on the credit side of the trading accounts and within the asset group of the balance sheet. If the values of the adjusted purchases are provided, then the trial balance will show both the accounts for adjusted purchases and the closing stock.

There are things other then income reported on a K-1 like basis information, depreciation, sec. 179 expensing and tax credits which all show up on different sections of your return. K-1 earnings would ordinarily get reported on Page 2 of schedule E. If these are all zeros then this schedule will not be required. I like to keep track of basis information within my software so I do complete that section but it only generates a supplemental worksheet. The IRS also has a copy so they know there is no income.If everything is actally zero, you are fine not reporting anything.